I 

116TH CONGRESS 

1ST SESSION H. R. 3037 

To amend the Internal Revenue Code of 1986 to provide a credit to employers 

for certain employee education and training expenses. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 28, 2019 

Mr. THOMPSON of California (for himself and Mr. BYRNE) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a credit to employers for certain employee education 

and training expenses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Career Advancement 

5 through New Skills Act’’. 

6 SEC. 2. CREDIT FOR EMPLOYEE EDUCATION AND TRAINING 

7 EXPENSES. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45T. EMPLOYEE EDUCATION AND TRAINING CREDIT. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec5 tion 38, the employee education and training credit deter6 mined under this section for the taxable year is an amount 

7 equal to 25 percent of the qualified education and training 

8 expenses paid or incurred by the taxpayer during such tax9 able year with respect to employees of the taxpayer. 

10 ‘‘(b) LIMITATION.—The qualified education and 

11 training expenses taken into account under subsection (a) 

12 shall not exceed $5,000 with respect to any employee for 

13 any taxable year. 

14 ‘‘(c) QUALIFIED EDUCATION AND TRAINING EX15 PENSES.—For purposes of this section, the term ‘qualified 

16 education and training expenses’ means amounts paid or 

17 incurred for a program of education or training of an em18 ployee of the taxpayer if such program is specifically de19 signed to maintain or improve skills of such employee 

20 which are necessary or useful either— 

21 ‘‘(1) in the employee’s current employment po22 sition with such employer, or 

23 ‘‘(2) in another employment position with such 

24 employer to which the employer reasonably antici25 pates such employee may transfer. 


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1 Such term shall not include any amount paid or incurred 

2 for a program of education or training which is provided 

3 by such employer or by any person which bears a relation4 ship to such employer described in section 267(b) or 

5 707(b)(1). 

6 ‘‘(d) SPECIAL RULES.— 

7 ‘‘(1) AGGREGATION.—All persons which are 

8 treated as a single employer under subsections (a) 

9 and (b) of section 52 shall be treated as a single em10 ployer for purposes of this section. 

11 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc12 tion or credit shall be allowed under any other provi13 sion of this chapter with respect to the amount of 

14 the credit determined under this section. 

15 ‘‘(3) TRADE OR BUSINESS REQUIREMENT.—No 

16 credit shall be allowed under this section with re17 spect to any employee unless such employee is pro18 viding services in a trade or business of the tax19 payer.’’. 

20 (b) CREDIT MADE PART OF GENERAL BUSINESS

21 CREDIT.—Subsection (b) of section 38 of the Internal 

22 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

23 the end of paragraph (31), by striking the period at the 

24 end of paragraph (32) and inserting ‘‘, plus’’, and by add25 ing at the end the following new paragraph: 


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1 ‘‘(33) the employee education and training cred2 it determined under section 45T.’’. 

3 (c) CLERICAL AMENDMENT.—The table of sections 

4 for subpart D of part IV of subchapter A of chapter 1 

5 of such Code is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 45T. Employee education and training credit.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

Æ 


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